Bayside Savings Bank, Florida, Closed By Office Of Thrift Supervision

Bayside Savings Bank was closed today by the Office of Thrift Supervision which appointed the FDIC as receiver. The FDIC entered into an agreement with Centennial Bank, Conway, Arkansas, to acquire all of the deposits and assets of failed Bayside Savings. Centennial Bank also acquired Coastal Community Bank, Panama City Beach, Florida, which was also closed today by regulators.

Bayside Savings Bank had been issued a cease and desist order in December 2009 by the Office of Thrift Supervision (OTS) requiring Bayside to raise additional capital. Subsequent to the OTS enforcement order, Merchants Holding Capital of Boca Raton, Florida, applied to the OTS to purchase Bayside but the transaction was never approved. Unable to raise critically needed capital, Bayside’s failure was inevitable.

All branches of failed Bayside Bank will reopen as branches of Centennial Bank and there will be no interruption in service to depositors.

Bayside Bank had total assets of $66.1 million and total deposits of $52.4 million. Centennial Bank and the FDIC entered into a loss-share transaction on $48.3 million of Bayside’s assets, with both parties sharing in the losses. According to the FDIC, the loss-share transaction maximizes returns by keeping assets in the private sector and minimizes disruption to loan customers.

Bayside becomes the nation’s 105th banking failure this year and the 19th in Florida, which now leads the nation in bank failures, second only to Georgia with 11 banking failures. The cost to the FDIC Deposit Insurance Fund for closing Bayside is estimated at $16.2 million.